EUR/USD Price Forecast – Euro Continues to Test Overall Range

The Euro has gone back and forth during the trading session on Friday as we continue to see a lot of confusion as to where risk appetite is going forward. All things been equal, this is a market that is at the top of a consolidation area, with the 1.1375 level above offering resistance, just as the 1.1225 level underneath offers support. That being said, the market is likely to continue to be very noisy, so therefore I think we just simply hang about in this region between now and the end of the year. That being said, the market is well-defined, so if we do break out, then we have some targets the think about.

EUR/USD Video 20.12.21

If we can break above the 1.1370 level, then I think the market could go looking towards the 1.14 handle, followed by the 1.15 level after that. The market breaking above there would change the entire trend, but right now I do not think we are anywhere near doing that. To the downside, the 1.12 level will offer a significant amount of support, so breaking down below there could open up a move down to the 1.10 level.

At this point in time, I think what we are looking at is a lack of liquidity heading into the holiday, and therefore it makes a certain amount of sense that we would see the markets slow down, especially as we begin next week with Christmas coming. This is the time of year where your expectations have to be somewhat limited, and therefore I think the market will be limited as well.

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